By Brendan Conway
Of DOW JONES NEWSWIRES
NEW YORK -(Dow Jones)- U.S. stocks erased most of a morning rally in afternoon trading Thursday, as consumer-discretionary stocks and the technology-heavy Nasdaq Composite led the way lower.
The Dow Jones Industrial Average was ahead by 60 points, or 0.5%, at 11068 as of 1:45 p.m. EDT, paring an earlier gain of well above 200 points. The Standard & Poor's 500-stock index shed 2 points, or 0.2%, to 1149, while the Nasdaq Composite lost 37 points, or 1.5%, to 2454.
"No one believes for a second that the European problem has gone away," said Alan Valdes, director of floor trading at DME Securities, contending that many traders were reluctant to hold on to positions heading into the weekend. He added that many were also closing out positions amid light trading during the Rosh Hashanah holiday and expectations for even lighter volume Friday.
Earlier, stocks surged after the release of two better-than-expected U.S. economic data and relief over a German vote for a euro-zone bailout fund.
Advanced Micro Devices led the S&P 500 lower, falling 15%. The chip maker lowered its revenue growth forecast and its margin estimate for the current quarter, citing manufacturing issues at a factory in Germany.